Kumho Tire rebounds over reported acquisition proposal by domestic company

Lim Chang-won Reporter Posted : 2017-12-12 10:01 Updated : 2017-12-12 10:01
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[Courtesy of Kumho Tire]

Shares of Kumho Tire rebounded for the second consecutive day on Tuesday after regulators demanded the troubled company issue a public notice over a domestic company's reported proposal to acquire it through paid-in capital increase.

In early trading, Kumho Tire was up about eight percent from Monday's close of 3,830 won (3.5 US dollars). The debt-stricken tire maker was put under a debt restructuring program by creditors following a failed attempt to sell a controlling stake to a Chinese company.

There have been concerns about court receivership since the chairman of Kumho Asiana Group promised in late November to take his hands completely off Kumho Tire. Creditors have rejected Park's self-rescue package, saying his mismanagement caused Kumo Tire's liquidity crisis.

China's Doublestar agreed in March to secure a 42.01 percent stake in Kumho Tire, but negotiations broke down because of disputes over job security, a price cut and other thorny issues.